Plans by Virgin Enterprises owner Richard Branson to enter the Australian superannuation industry have caused a stir with financial planners, who say the multi-billionaire is out to “maximise attention regardless of the wider interest”.

Last week Sir Richard announced he had forked out $30 million of the group’s money to set up a new Australian arm of the Virgin dynasty – Virgin Superannuation – which will launch as a retail super fund when Super Choice comes into play on July 1.

He says the fund will be based on the “same simple great value and customer-centric principles that underpin the Virgin credit card”. But the peak body supporting planners, the Financial Planning Association (FPA), says Sir Richard’s promise of low fees doesn’t necessarily mean customers will receive a good product.

Virgin Money MD Rohan Gamble says company research suggests consumers “are sick of high fees, confused by complex documentation and often duped by financial planners who pretend to provide impartial advice when in reality they’re on the payrolls of the super funds”.

He says Super Choice will allow Australians to take more control of their super, which is currently “lining the pockets of intermediaries”.

FPA CEO Kerrie Kelly says Virgin’s announcement does “not reflect the reality of the regulatory requirements that now operate in Australia” and “put[s] people off getting financial advice”.

“A wide range of superannuation approaches and choices are essential, and new products that are appropriate and relevant must always be welcomed,” she said. “But the real issue for retirement savings is long-term performance, not just fees.

“Financial planners are not there to promote Virgin products, or any others. The service provided by members of the FPA is valuable advice, developing approaches to suit their clients’ particular circumstances and to give them the results they are looking for.”